Software · head to head
Charles Schwab vs Vanguard
The short version
- Each has a real cost: Charles Schwab broker-assisted trades cost $25 and automated phone trades cost $5 in addition to the standard $0 online commission, per the App Store listing for Schwab Mobile; Vanguard a 25 USD annual account service fee applies unless the account uses e-delivery, is a Cash Plus Account, is enrolled in an advisory service, or holds 1 million USD or more in qualifying assets
- They diverge on capability: Charles Schwab covers Retirement planning, Vanguard covers Low-cost index funds.
Where they differ
Only the attributes on which Charles Schwab and Vanguard actually diverge.
| Attribute | Charles Schwab | Vanguard |
|---|---|---|
| Founded | 1971 | 1975 |
Identical on both: starting price (On request), pricing model (transaction), free tier (No), platforms (Web, IOS, Android), user rating (Not yet rated), category (Unknown).
What each one covers
Drawn from each product's published feature list. An absence here means we hold no record of it - not that the product lacks it.
Only in Charles Schwab
- Retirement planning
- Wealth management
- Research tools
Only in Vanguard
- Low-cost index funds
- Retirement accounts
- Financial advisors
Both cover
- Commission-free trading
- Bank accounts
- Investment accounts
- Web support
- IOS support
- Android support
What people use each for
The jobs each tool is most often brought in to do.
Charles Schwab
- Budget Managementnot Vanguard
- Expense Trackingnot Vanguard
- Investment Trackingnot Vanguard
Vanguard
- Holding low cost index mutual funds and ETFs for long term investingnot Charles Schwab
- Running IRAs and taxable brokerage accountsnot Charles Schwab
- Employer retirement plan participationnot Charles Schwab
Where each one falls short
Documented limitations, not opinions. Every one is a constraint you would hit in normal use.
Charles Schwab
- Broker-assisted trades cost $25 and automated phone trades cost $5 in addition to the standard $0 online commission, per the App Store listing for Schwab Mobile
- Options trades carry a $0.65 per-contract fee on top of the $0 online commission, per the App Store listing for Schwab Mobile
Vanguard
- A 25 USD annual account service fee applies unless the account uses e-delivery, is a Cash Plus Account, is enrolled in an advisory service, or holds 1 million USD or more in qualifying assets
- Broker assisted trades cost 25 USD each, waived only at 1 million USD in qualifying assets or with an advisory service
- Options trades carry a 1 USD per contract fee on top of zero commission
- Transaction fee mutual funds cost 20 USD per online trade below 1 million USD in qualifying assets, falling to 8 USD only at higher tiers
- Outgoing wire transfers cost 10 USD unless the account is a retirement account or holds 1 million USD or more
- Commission levels are tied to a Qualifying Assets balance, so the cheapest rates require 1 million USD or more
Pricing, plan by plan
Charles Schwab
On request- Individual BrokerageFree
- Commission-free trading
- Research tools
- Schwab Advisor Services$undefined/month
- All Brokerage features
- Wealth management
- Personal advisors
Vanguard
On request- Self-Directed Investor$undefined/month
- Low-cost index funds
- Commission-free trading
- Advisory Services$undefined/month
- All Self-Directed features
- Financial advisors
Which should you pick?
Choose Charles Schwab if
- You need retirement planning.
- You work on Web, IOS, Android.
- You also want wealth management.
Choose Vanguard if
- You need low-cost index funds.
- You work on Web, IOS, Android.
- You also want retirement accounts.
Questions people ask
- Is Charles Schwab or Vanguard better?
- Neither clearly leads. Charles Schwab starts at On request and Vanguard at On request, and user ratings are close enough to be indistinguishable. Choose on capability and platform support.
- Which is cheaper, Charles Schwab or Vanguard?
- Charles Schwab starts at On request and Vanguard at On request.
- Does Charles Schwab or Vanguard run on more platforms?
- Both run on Web, IOS, Android, so platform support will not decide this one for you.
- What is Charles Schwab best used for?
- Charles Schwab is most often used for budget management, expense tracking, investment tracking. Of those, budget management and expense tracking are not what Vanguard is typically brought in for.
- What can Charles Schwab do that Vanguard cannot?
- Charles Schwab covers Retirement planning, Wealth management, Research tools. Vanguard covers Low-cost index funds, Retirement accounts, Financial advisors. Both handle Commission-free trading, Bank accounts, Investment accounts, Web support.